Samsung warns of 60% operating profit drop

Slowing sales of Galaxy smartphones could lead to a disastrous financial quarter for the world’s biggest mobile phone and TV manufacturer.

The BBC reports that Samsung expects operating profit to be down 60 per cent year-on-year at 2.5bn for the three months ending September.

The Galaxy series has started to struggle in the face of competition from the likes of Apple and emerging Chinese competitors Xiaomi and Lenovo.

"Smartphone shipments increased marginally amid intense competition," Samsung said. "However, the operating margin declined due to increased marketing expenditure and lowered average selling price.”

Samsung added that it is "preparing new smartphone line-ups featuring new materials and innovative designs, as well as a series of new mid-to-low end smartphones".